diff --git a/client/template.go b/client/template.go
index 9ca50b9d..e9ea258f 100644
--- a/client/template.go
+++ b/client/template.go
@@ -49,7 +49,7 @@ type Template struct {
 	IsGitlabEnterprise   bool             `json:"isGitLabEnterprise"`
 	TokenId              string           `json:"tokenId,omitempty" tfschema:",omitempty"`
 	UpdatedAt            string           `json:"updatedAt"`
-	TerraformVersion     string           `json:"terraformVersion"`
+	TerraformVersion     string           `json:"terraformVersion" tfschema:",omitempty"`
 	TerragruntVersion    string           `json:"terragruntVersion,omitempty" tfschema:",omitempty"`
 	IsDeleted            bool             `json:"isDeleted,omitempty"`
 	BitbucketClientKey   string           `json:"bitbucketClientKey" tfschema:",omitempty"`
@@ -78,7 +78,7 @@ type TemplateCreatePayload struct {
 	GitlabProjectId      int              `json:"gitlabProjectId,omitempty"`
 	Revision             string           `json:"revision"`
 	OrganizationId       string           `json:"organizationId"`
-	TerraformVersion     string           `json:"terraformVersion"`
+	TerraformVersion     string           `json:"terraformVersion,omitempty"`
 	TerragruntVersion    string           `json:"terragruntVersion,omitempty"`
 	IsGitlabEnterprise   bool             `json:"isGitLabEnterprise"`
 	BitbucketClientKey   string           `json:"bitbucketClientKey,omitempty"`
@@ -111,7 +111,7 @@ type VariablesFromRepositoryPayload struct {
 	Repository           string   `json:"repository"`
 }
 
-func (payload TemplateCreatePayload) Validate() error {
+func (payload *TemplateCreatePayload) Invalidate() error {
 	if payload.OrganizationId != "" {
 		return errors.New("must not specify organizationId")
 	}
@@ -159,6 +159,10 @@ func (payload TemplateCreatePayload) Validate() error {
 		}
 	}
 
+	if payload.Type != "terragrunt" && payload.Type != "terraform" {
+		payload.TerraformVersion = ""
+	}
+
 	return nil
 }
 
diff --git a/env0/resource_template.go b/env0/resource_template.go
index 2bdadb3d..83da2e3c 100644
--- a/env0/resource_template.go
+++ b/env0/resource_template.go
@@ -384,7 +384,7 @@ func templateCreatePayloadFromParameters(prefix string, d *schema.ResourceData)
 	templateCreatePayloadRetryOnHelper(prefix, d, "deploy", &payload.Retry.OnDeploy)
 	templateCreatePayloadRetryOnHelper(prefix, d, "destroy", &payload.Retry.OnDestroy)
 
-	if err := payload.Validate(); err != nil {
+	if err := payload.Invalidate(); err != nil {
 		return payload, diag.Errorf(err.Error())
 	}
 
diff --git a/env0/resource_template_test.go b/env0/resource_template_test.go
index a812dcb7..fb804528 100644
--- a/env0/resource_template_test.go
+++ b/env0/resource_template_test.go
@@ -600,6 +600,7 @@ func TestUnitTemplateResource(t *testing.T) {
 				IsHelmRepository:     templateUseCase.template.IsHelmRepository,
 				HelmChartName:        templateUseCase.template.HelmChartName,
 			}
+
 			updateTemplateCreateTemplate := client.TemplateCreatePayload{
 				Name:                 templateUseCase.updatedTemplate.Name,
 				Repository:           templateUseCase.updatedTemplate.Repository,
@@ -625,6 +626,11 @@ func TestUnitTemplateResource(t *testing.T) {
 				HelmChartName:        templateUseCase.template.HelmChartName,
 			}
 
+			if templateUseCase.template.Type != "terraform" && templateUseCase.template.Type != "terragrunt" {
+				templateCreatePayload.TerraformVersion = ""
+				updateTemplateCreateTemplate.TerraformVersion = ""
+			}
+
 			if templateUseCase.vcs == "Cloudformation" {
 				templateCreatePayload.Type = "cloudformation"
 				updateTemplateCreateTemplate.Type = "cloudformation"